Generalized Ozaki cost function

Generalized Ozaki cost function

The generalized-Ozaki cost is a general description of cost described by Shuichi Nakamura. [cite journal |author=Shinichiro Nakamura |title=A Nonhomothetic Generalized Leontief Cost Function Based on Pooled Data |journal=The Review of Economics and Statistics |volume=72 |issue=4 |year=1990 |pages=649–656 |url=http://links.jstor.org/sici?sici=0034-6535%28199011%2972%3A4%3C649%3AANGLCF%3E2.0.CO%3B2-0 |doi=10.2307/2109605]

For output "y", at date "t" and a vector of "m" input prices "p", the generalized-ozaki cost, "c", is

: c(p,y,t) = sum_i b_{ii} left( y^{b_{yie^{b_{ti}t} p_i + sum_{j,:,j eq i} b_{ij} sqrt{p_ip_j} y^{b_y} e^{b_tt} ight).

References


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